In Canada, unfair dismissal (also called “unjust dismissal” or “wrongful dismissal“) occurs when an employer terminates an employee without just cause or without providing proper notice and compensation.
The Canada Industrial Relations Board defines unjust dismissal as “when an employer ends the employment of an employee for reasons that are unfair or wrong.”
Under the Ontario Employment Standards Act (ESA), dismissal can be considered unfair if it goes against employment law protections or breaches your contract.
The Canada Labour Code further explains that:
“No employer shall dismiss, suspend, lay off, demote or discipline an employee without just cause.”
What Makes a Dismissal Unfair
A dismissal may be unfair if:
There was no valid reason for termination (for example, you were fired for personal bias rather than performance).
The employer did not follow proper disciplinary procedures.
You were dismissed for exercising a workplace right (such as requesting leave or filing a complaint).
Automatically Unfair Dismissals
Certain dismissals are automatically considered unfair regardless of other circumstances:
- Pregnancy or parental leave
- Reporting workplace harassment or safety issues
- Discrimination based on race, gender, disability, religion, or age
- Terminated for serving jury duty, or exercising other legal rights
- Fired for filing complaints about workplace safety or human rights violations
- Fired for reporting illegal activities or safety violations in good faith
These cases are called automatically unfair dismissals.
When Unfair Dismissal Laws Apply
Unfair dismissal laws typically apply once you have completed a minimum period of service with your employer (often three months or more, depending on jurisdiction).
How to Claim Unfair Dismissal Compensation
To make a claim:
Collect documents such as your termination letter, employment contract, and any communication related to your dismissal.
File a complaint with the relevant authority (for example, the Human Rights Tribunal or Labour Board).
Consult an employment lawyer to strengthen your case and guide you through the process.
How Long You Have to Claim
Claims must be made quickly.
In Ontario, most unfair dismissal or wrongful dismissal claims should be filed within two years of termination, while labour tribunal claims may have much shorter deadlines (sometimes just 90 days).
What You Get If You Win
If successful, you may receive:
Compensation (damages or lost wages)
Severance pay
In rare cases, reinstatement to your job
The exact outcome depends on your situation and how long you worked with the employer.
